Washington, DC (July 26, 2007) – Today, the House Committee on Financial Services approved key amendments introduced by Rep. Rubén Hinojosa (D-TX) that will positively impact South Texans’ access to affordable flood insurance. Hinojosa, a senior member of the Financial Services Committee, proposed and won approval for several amendments that address problematic issues in H.R. 3121, the Flood Insurance Reform and Modernization Act of 2007.
Currently, the Federal Emergency Management Agency is creating flood maps for the entire country. Under current law, these maps will be good for five years. If a community wants to request a revision to a map, they must pay 50 percent of the cost for the remap.
Hinojosa’s successful amendment makes sure that Rio Grande Valley communities would not have to provide matching funds for any requested flood map updates that would reflect the future repair of dams and levees that is scheduled to occur.
“After Hurricane Katrina, there has been a renewed commitment by the federal government to provide more funds for the repair of these flood control systems,” said Hinojosa. “As they are repaired, the risk to people living behind these structures will change. And there is no requirement that new maps be created to reflect these lowered risks.
“My amendment simply says: if a community would like a map updated because of a change in status of dams, levees and flood control systems under the jurisdiction and control of the federal government, they should not have to reach into their own pocketbooks,” continued Hinojosa. “Since local communities were not at fault for the disrepair of federal flood control projects, they should not have to pay for remaps when the federal government finally lives up to its responsibility and makes repairs.”
The Flood Insurance Reform and Modernization Act of 2007 significantly reforms the National Flood Insurance Program. It attempts to encourage broader participation, increased accountability, the elimination of certain Federal subsidies, and an update of flood insurance maps. During the Committee’s consideration of the bill, four other amendments introduced by Hinojosa were approved to remedy several critical issues that had been formerly left out of the Act. These successful amendments will:
„X Include real estate professionals on community advisory committees working with FEMA to create flood maps.
„X Require the director of FEMA to study the impact charging actuarially-based premium rates for pre-flood insurance.
„X Ensure that people whose primary residence is a rental unit will be protected under H.R. 3121. This addresses the possibility that property owners whose flood insurance premiums rise as a result of the bill will pass the increase onto their renters, thus making affordable properties unaffordable.
„X Ensure that owners of four or more rental units in a building are not excluded from the ability to purchase business interruption insurance. Multifamily owners frequently purchase this insurance for loss of rents while the property is uninhabitable or under repair due to damage.